ON Semiconductor: Analyst Targets $126, Sees Non-Auto Growth

ON Semiconductor (ON) received a Strong Buy rating from a Seeking Alpha analyst with a $126 price target, implying a 29.8% upside from the current $97 level. The analyst argued the stock is more than a cyclical auto semiconductor play, pointing to other growth drivers.

AlphaScala's Alpha Score, however, sits at 36 out of 100, a Mixed rating. That score reflects the stock's technology sector exposure and the uncertainty around its earnings path. The bull case rests on ON's ability to grow beyond automotive. The company's industrial and power semiconductor segments could provide a buffer against auto demand swings.

If the next earnings report shows revenue growth outside auto, the thesis strengthens. A miss on overall revenue or a downward revision would weaken it. The analyst plans to initiate a long position within 72 hours, according to the disclosure.

For more on ON Semiconductor, see the ON stock page.